Bank Indonesia regulates currency hedging for stable rupiah

Bank Indonesia said it will regulate currency hedging by individuals and companies, including state-owned firms, to help stabilize Asia’s most-volatile currency.
The central bank will require Indonesians and corporations to present documents to show underlying economic activity, such as international trade, foreign debt and investments, to conduct hedging transactions with lenders, it said in a statement posted on its website today. The amount and duration of the hedges will be limited by the underlying activity, it said………………………………………..Full Article: Source